Common use of Purpose of Coordination of Benefits Clause in Contracts

Purpose of Coordination of Benefits. This coordination of benefits article sets out the rules for the order of payment of Covered Charges when two or more plans – including Medicare – are paying. When a Covered Person is covered by this Plan and another plan, or the Covered Person’s Spouse is covered by this Plan and by another plan, or the couple’s Covered Dependents are covered under two or more plans, the plans will coordinate benefits when a Claim is received. The plan that pays first according to the rules will pay as if there were no other plan involved. The secondary and subsequent plans will pay the balance due up to 100% of the total Allowable Charge.